Modest revenue, weak margin likely for Infosys & Wipro in Q1FY23

After a quiet stage set by TCS and HCL Tech in Q1, Wipro and Infosys are next in line to report their June quarter 2022 results on Wednesday, July 20 and Sunday, July 24, respectively.

The IT industry continues to battle unprecedented levels of attrition, which climbed 19.7 per cent year-on-year at TCS. At HCL Technologies, attrition rate grew at 23.8 per cent YoY in Q1FY23.

Analysts believe employee exits would be within a similar range for Wipro and Infosys on the back of supply-side pressures like wage inflation, travel costs and seasonality.

This would lead to Ebit margin contraction in the range of 50 to 70 basis points quarter-on-quarter to 16 per cent for Wipro, and 21 per cent for Infosys.